Exclusive: Huawei’s US research arm, to build their own identity

24 June 2019

8 min read

(Reuters) – The U.S.-based research arm of china’s Huawei Technologies Co., Ltd – Futurewei Technologies, Inc., has moved to separate its business operations from its parent, and since the U. S government Can set up Smartphone to the market in a “black list”, according to two people familiar with the matter.

A FILE PHOTO of A Huawei logo at the Shenzhen International Airport in Shenzhen, Guangdong province, China, and the 17th of June, 2019 at the latest. (REUTERS photo/Aly Song, File/Image, GLOBAL BUSINESS, the WEEK AHEAD

Futurewei has banned Huawei, the employees of the offices, and moved to Futurewei employees to implement a new IT system, and prohibited them from the use of the Smartphone’s name or logo in its communications for a Futurewei representative told Reuters on condition of anonymity. Huawei will continue to own, Futurewei, the staff member said.

Milton Frazier, Futurewei’s general counsel, declined to comment on the split, and the strategy behind it, ” there are questions, Huawei spokesperson for Chase Skinner. Skinner did not answer any questions about the exercise.

The breakdown of the activities that have not previously been reported, does not like a lot of AMERICAN universities have put into research partnerships with Huawei, which, in response to the U.S. government’s allegations that the company poses a threat to national security. A lot of universities are rethinking their partnerships with Chinese companies.

Huawei is one of the world’s largest telecommunications equipment manufacturers. The Commerce Department, in May, the firm’s “entity list” of organizations that pose a security risk. The Department of Justice earlier filed charges against the company for alleged theft of trade secrets, and other crimes.

Futurewei is Huawei’s U.S.-based research and development arm. The company employs hundreds of people at its offices in Silicon Valley and the greater Seattle, Chicago, and Dallas areas, according to their employees ‘ LinkedIn pages. Futurewei filed more than 2,100 patents in the field of telecommunications, and 5G cellular networks, and video and camera technology, according to information from the United States Patent and Trademark Office.

Up to now, Futurewei, the activities are largely indistinguishable from Huawei’s Futurewei representative said. Futurewei did not have a separate brand, or even a web site, the staff member said, the staff is often cited as Huawei’s employees.

The two companies have executed a broad range of partnerships and grant programs with AMERICAN universities.

Last year, 26 members of Congress sent a letter to the Education Secretary, Betsy DeVos, a warning that Huawei’s partnerships with at least 50 AMERICAN colleges, “can be a serious threat to the national security.”

The fear is that Huawei has been using the university partnerships in order to scope the research areas such as artificial intelligence, artificial intelligence, telecommunications and robotics, which can be used in the hacking and espionage operations, and giving Chinese companies a competitive advantage in the U.S. market competitors.

Some of the universities are wrestling with the question of whether they will be able to continue to build partnerships with Futurewei, who – the government, the entity list, even if they are suspended, the funding and research agreements with Huawei.

The University of California at Berkeley, for example, is allowing researchers to continue to work with Futurewei, after the suspension of all of the resources, and the exchange of information with the Smartphone, in May, under the supervision of professors from uc Berkeley, research chief, Randy Katz,.

Uc Berkeley will also be suspended for the financing of Futurewei, but continues to allow for Futurewei employees to participate in the study assessments subject to certain limitations, Katz wrote the department. Uc Berkeley staff and students can now choose to only work with Futurewei, employees who are united states citizens or legal permanent residents, and who have agreed in writing not to share certain sensitive information with a Smartphone.

The companies in the entity list have been banned from buying parts and components from Us companies without US government approval. Most of the universities have consulted the list to make decisions on grants and partnerships, said: “John Smith, of the Association of American Universities.

Katz said he was issued his guidance, to Futurewei out of an “abundance of caution” to ensure that the research does not break the laws that prevent the sharing of sensitive AMERICAN technology to the entity listed on the stock companies. In consultation with the Ministry of business, uc Berkeley, determined that, Futurewei is not subject to the same limitations as a Smartphone, Katz wrote the department.

“However, the united states government may have other actions taken against Futurewei,” he wrote.

The us Department of Commerce, could not legally place, Futurewei, on the entity list, because it is a U.S.-based company, the agency said in a statement. Commerce spokesman Ari Schaffer did not answer the questions of whether and how the agency controls and university research and partnerships, the entity list, the companies or their U.S. subsidiaries.

There is nothing illegal about the colleges to take grants of money or the performance of the research by these firms, said Ben Robinson, head of the China practice at the law firm of Dunlap, Bennett & Ludwig. What is prohibited, he said, has been the transfer of any of the material confidential technology, to Ascend, by a person or organization.

‘FUTUREWEI IS A HUAWEI

The united states Department of Justice in January announced that charges Smartphone and a council in connection with an alleged scheme to mislead the bank and the United States over its operations in Iran, which is under U.S. sanctions. Prosecutors also accused the company of stealing of robot-technology-T-Mobile usa, Inc. The company has pleaded not guilty in both cases.

The defeat of the Huawei is in the midst of an escalating U.S.-China trade war, in which the transfer of US technology and other intellectual property rights of Chinese enterprises has been a subject of much debate.

In addition to uc Berkeley, the list of the colleges and universities where students work together with a Smartphone or Futurewei includes Stanford, Princeton, and Columbia universities and the Massachusetts Institute of Technology (mit), the University of Michigan and the University of Texas at Austin.

Congressman Jim Banks, an Indiana Republican who signed the letter, warning about the Huawei university-based partnerships, said the move is to separate the operations of Futurewei, and Huawei could not solve these problems.

“Futurewei is a Smartphone,” Banks told Reuters.

The banks is a proposed amendment to the National Defense Authorization Act, which would restrict the federal funding of universities working with companies considered to be a threat to the safety and security.

THE DILEMMA, ON THE CAMPUS OF

UC Berkeley has received nearly $ 8 million from the two acquisitions made in the past two years, ” said UC Berkeley spokesman Dan Mogoluf. Katz, uc Berkeley’s research chief, said the school would have to reconsider its moratorium on the payment of money, Futurewei and at the University of California Office of the President, and gives his blessing.

The office, which oversees the 10 state universities, including uc Berkeley, said in a statement that it aims to balance security concerns with the preservation of an “open academic environment” for the international research community.

At the university of Stanford, the Dean of Research, Kathryn Moler, said that the university has “paused” the new financing from Huawei and Futurewei is in December, but has continued to work with the companies on the basis of the existing rules and regulations. Moler does not answer the question on whether or not the University continues to accept money from the firms and declined to comment on the question of whether it would be with the suspension on the new Futurewei, the financing of the separate activities of a Smartphone.

Stanford computer science professor John Ousterhout says in his laboratory, and was getting $ 500,000 a year from Futurewei, and in order to promote a $2 million, when he heard of the suspension.

“I’m not here to defend the Smartphone. It may very well be that Huawei has done some seriously bad things from happening,” Ousterhout said. But, in the universities, ” he said, “it should not be a tool for law enforcement and foreign policy, and the maintenance of the tool.”

Andrew Chien, University of Chicago professor who was a lost Smartphone funding, he said the it community needs to “grow up” and acknowledge that the nature of the security risks that have been run by our colleagues in disciplines such as physics, whose work has military applications.

“It is so central and so important and so dangerous,” he said. “We’re past the point where you refuse to do so.”

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